Credit Score

Credit Scoring is a very useful tool to evaluate the credit quality of individuals and legal entities. By the consideration of several factors, the system classifies individuals in two main category: the ones with potential to honor the loan granted and the ones with no potential to gather such condition. By including information in the system, in few seconds it presents an answer regarding the creditworthiness or not.

It has been used in the world ever since last century. It was initially applied by the insurance companies of the United States. Very long ago, the system is used in Brazil by financial companies, banks and credit card companies, in the credit evaluation of buyers of durable assets (automobiles, electronics, etc.), personal credit applicants in order to attribute credit limit to customer.

The system divides potential credit applicants in two categories: good and bad payers, based on the considerate questions (age, job, income, professional activity, equity, type of residence, zip code, etc.) and any and all variable created by the company creating the credit scoring they find it relevant.

It depends fundamentally on the quality of the data chose and the inter-relationship intelligence, the so called Discriminating Analysis.

The system can be built: